The Employer Association Gesamtmetall sharply criticized the coalition’s agreement on the new federal wage‑faithfulness law. Oliver Zander, the association’s chief executive, told the “Handelsblatt” (Wednesday issue) that the law is “completely impractical”, will slow and increase procurement costs for taxpayers, and, based on lessons from state‑level wage‑faithfulness statutes, is not suitable for achieving stronger collective wage commitments. He described it as “organized irresponsibility” by the coalition, especially in the midst of Germany’s longest economic crisis.
Zander noted that during the CDU party conference over the weekend, nearly every speech demanded a reduction in bureaucracy and even adopted a two‑year bureaucracy moratorium. Yet the same week a federal wage‑faithfulness law is expected to pass, he warned, repeating the mistakes of the supply‑chain due‑diligence law: mistrust of business, absurd bureaucratic procedures, excessive reporting requirements, and new control bodies.
The association also questions the law’s constitutionality, arguing that it discriminates against collective wage agreements and thus also against companies that would have been protected under those agreements. It further claims the law unfairly treats domestic firms, as foreign companies would not be obliged to comply if they produce overseas. Finally, Zander says the legislation would create unpredictable liability risks within supply chains.